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ICE Announces Record Environmental Market Trading in 2024

1. Record number of 20.4 million environmental contracts traded in 2024. 2. Environmental contracts traded on ICE valued over $1 trillion this year. 3. ICE's EU Carbon Allowance market shows significant year-over-year growth. 4. New emissions trading scheme expected to expand carbon market coverage. 5. ICE plans to launch EUA 2 futures in May 2025.

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FAQ

Why Very Bullish?

Record trading volumes and increasing contract values should positively influence ICE's market position, similar to past increases in trading activity that typically resulted in stock price appreciation for exchanges.

How important is it?

The substantial trading increase and new products highlight ICE's leadership in environmental markets, directly impacting investor sentiment and stock valuation.

Why Long Term?

The expansion of carbon markets and introduction of new futures contracts indicate sustained demand, mirroring historical growth in related markets that have driven long-term performance.

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EU Carbon AllowancesUK Carbon AllowancesCalifornia Carbon Allowances
AMSTERDAM & LONDON & NEW YORK--(BUSINESS WIRE)--Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, today announced that a record number of environmental contracts traded on ICE in 2024, equivalent to over $1 trillion in notional value for the fourth consecutive year. A record 20.4 million environmental futures and options contracts traded on ICE in 2024, up approximately 40% year-over-year (y/y) along with record average daily volume and participation. ICE’s EU Carbon Allowance (EUA) futures and options, which represents the world’s most liquid carbon derivatives market, and U.K. Carbon Allowance (UKA) futures and options each reached record participation in 2024 and physically delivered carbon allowances worth $40 billion. Across ICE’s North American environmental markets, a record 5.6 million futures and options traded in 2024, with a record $12.3 billion physically delivered. ICE’s California Carbon Allowance (CCA) market hit record traded volume in 2024 of 3.9 million contracts, up 68% y/y. “For the last twenty years, ICE has worked to create a truly interconnected global network of energy and environmental markets to allow customers to meet their emissions obligations and environmental price risk on a single platform,” said Gordon Bennett, Managing Director, Utility Markets at ICE. “At ICE we are working hard to develop scalable carbon credit markets, including CORSIA, the first global market-based carbon credit program targeted at reducing emissions from international aviation.” Reflecting how many carbon markets are expanding their scope and coverage, the European Union has created a new emissions trading scheme named ETS 2 to cover carbon dioxide emissions from fuel combustion in buildings and road transport. To help the market manage carbon price risk in these new sectors, ICE plans to launch EUA 2 futures on May 6, 2025, subject to regulatory approval. Since launch, 166 billion carbon allowances, 6 billion carbon credits, 588 million renewable energy certificates, and the equivalent of 21.2 billion Renewable Identification Numbers (RINs) have traded across ICE’s global environmental portfolio. About Intercontinental Exchange Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE’s futures, equity, and options exchanges – including the New York Stock Exchange – and clearing houses help people invest, raise capital and manage risk. We offer some of the world’s largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology, we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines and automates industries to connect our customers to opportunity. Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located here. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).” Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 – Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on February 8, 2024. Category: EXCHANGES ICE-CORP Source: Intercontinental Exchange

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